Investment Return Calculator
Enter your investment details to project long-term growth with multiple scenarios.
Investment Details
Projected Portfolio Value
$293,279
After 20 years at 7% annual return
Total Contributed
$130,000
Total Growth
$163,279
Real Value
$162,381
Scenario Comparison
Conservative (5%)
$234,848
+$104,848 growth
Moderate (7%)
$301,888
+$171,888 growth
Aggressive (10%)
$445,290
+$315,290 growth
Tax Impact
Year-by-Year Projection
| Year | Balance | Contributed | Growth | Dividends |
|---|---|---|---|---|
| 1 | $16,910 | $16,000 | $910 | $260 |
| 2 | $24,304 | $22,000 | $2,304 | $398 |
| 3 | $32,215 | $28,000 | $4,215 | $546 |
| 4 | $40,680 | $34,000 | $6,680 | $704 |
| 5 | $49,738 | $40,000 | $9,738 | $874 |
| 7 | $69,799 | $52,000 | $17,799 | $1,249 |
| 9 | $92,768 | $64,000 | $28,768 | $1,678 |
| 11 | $119,065 | $76,000 | $43,065 | $2,169 |
| 13 | $149,172 | $88,000 | $61,172 | $2,732 |
| 15 | $183,642 | $100,000 | $83,642 | $3,376 |
| 16 | $202,706 | $106,000 | $96,706 | $3,733 |
| 17 | $223,106 | $112,000 | $111,106 | $4,114 |
| 18 | $244,933 | $118,000 | $126,933 | $4,522 |
| 19 | $268,289 | $124,000 | $144,289 | $4,959 |
| 20 | $293,279 | $130,000 | $163,279 | $5,426 |
Historical Reference
The S&P 500 has averaged about 10% annually before inflation (~7% after) over the past several decades. Past performance doesn't guarantee future results.
Disclaimer
- Projections are hypothetical and don't guarantee future results.
- Actual returns vary significantly year to year.
- Tax treatment depends on account type (taxable, IRA, 401k, Roth).
- Consult a financial advisor for personalized investment advice.
Historical Stock Market Returns
The S&P 500 has averaged roughly 10% annually before inflation since 1926 — about 7% after inflation. But "average" can be misleading: individual years range from -37% (2008) to +52% (1954). Consistency and time in the market matter far more than timing the market.
| Asset Class | Historical Avg Return | Risk Level |
|---|---|---|
| S&P 500 (US Stocks) | ~10% | High |
| US Bonds | ~5% | Low-Medium |
| International Stocks | ~8% | High |
| REITs (Real Estate) | ~9% | Medium-High |
| High-Yield Savings | ~4-5% | Very Low |
The Power of Starting Early
Consider two investors who both invest $500/month at 7%:
- Investor A starts at age 25 and stops at 35 (10 years, $60K invested)
- Investor B starts at age 35 and invests until 65 (30 years, $180K invested)
At age 65, Investor A has ~$602K while Investor B has ~$567K. Starting just 10 years earlier — and investing 3x less money — produces a larger result. That's the compounding advantage of time.
Dollar-Cost Averaging
Investing a fixed amount at regular intervals (like monthly) means you buy more shares when prices are low and fewer when prices are high. This strategy removes the stress of market timing and has been shown to produce solid long-term results for most investors.
Where to Invest First
- Employer 401(k) match — free money; always contribute at least to the match
- High-interest debt — pay off credit cards before investing
- IRA/Roth IRA — $7,000 limit (2026), tax advantages
- Max out 401(k) — $23,500 limit (2026)
- Taxable brokerage account — no limits, but less tax-efficient
Frequently Asked Questions
What return rate should I use?
For a diversified stock portfolio, 7% (after inflation) or 10% (before inflation) is a commonly used historical average. Be conservative in planning — using 6-7% gives you a margin of safety. For bonds or savings, use 3-5%.
How does dividend reinvestment help?
Reinvesting dividends means those payments buy more shares, which generate their own dividends. Over decades, reinvested dividends can account for 40-60% of total returns. Most brokerages offer automatic dividend reinvestment at no cost.
Index funds vs individual stocks?
Index funds (like an S&P 500 fund) provide instant diversification at very low cost. Research consistently shows that most actively managed funds underperform index funds over 10+ years. For most investors, a simple index fund strategy is both easier and more effective.
Planning for retirement? Use our 401(k) Calculator to factor in employer match and tax-deferred growth.